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Buying at a Car Auction
Car auctions are a good place to get good bargains on cars.
But buying cars from auctions can be very complicated. This is
particularly true for the uninitiated. Of course the cars in
auctions are generally cheaper. But they are cheap because
they lack the guarantees that come with cars bought from dealers.
The rules in auctions are simple, you bid an item, you pay for it,
and you own it.
It is therefore not advisable for persons without much experience in
motor vehicles to just go to an auction and buy a car.
What you’ll need if you’re planning to buy a car in an auction is a
good eye, good observation skills and a willingness to learn the car
You can even make it a business by buying cars at auction and then
selling them at a profit. There are several people who have
made huge profits by buying and selling cars at auction.
There are basically two kinds of car auctions, local car auctions
and online car auctions. Each of the auctions work
differently. Each has a different set of rules so you must
study them very carefully if you are planning to buy a car from
either kind of auction.
If you want to buy a vehicle in a car auction you must first
pre-register with the local auction you want to join. The
pre-registration process won’t take much of your time and will
provide you all the essential information that you will need in
order to buy a car. An auction site will often have an auction
staff who will explain to you the rules of their auction site and
the procedures and instruction on how to participate and bid on the
It is wise to inspect the cars before the actual bidding begins.
Ask the auction organizer or staff if they can allow you to take a
closer look at the cars before the start of the actual auction.
Another wise decision is to set your payment limit before the actual
sale. This way, you won’t fall victim to the trap of
As in other auctions, it is very important that you signal your bids
carefully to the car auctioneer to avoid confusion. Settle
your transaction as soon as the auction ends. Look for the
block clerk and settle your accounts with him. A car auction
staff will usually be available to assist you when you are ready to
pay for the vehicle you have won and should also be able to
guarantee you a good title for the vehicle.
You must also check the vehicle after you have won and settled your
account. Take the vehicle for a test drive and make sure that
it conforms to the guarantee and representation made during the
Most auction sites would accept check or credit card if you cannot
pay the car with cash. An auction staff will also usually give
you a third party financing offer. It is advisable though to
have your own finances ready before entering a car auction.
Outside financing is usually cheaper than most in-house financing of
Ask for an invoice copy from the auction staff. This will
enable you to drive or ship your newly bought car to your location.
Most car auction managers will give you good deals on shipping
arrangements so inquire about this.
There really are no significant differences between a local auction
and an online auction. Online car auctions work more or less
the same way as local ones. The only disadvantage of online
auction sites is that you won’t be able to inspect the car as you
would in an actual car auction. In participating in online car
auctions make sure that you will be provided with all the necessary
information about the car upfront and that there is an actual
photograph of the vehicle.
Cars bought from an online auction are usually shipped to the buyer
for a minimal fee. Inspect the car immediately upon arrival at
your location to minimize risks.
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